End of Day Report

We are in the process of deciding on a new name for our afternoon report.

Highlights

  • ASX 200 soars 62 points to 5728 as sellers run for cover.
  • High 5732 Low 5672. Volume modest. Down 7.7% in October.
  • High PE stocks still under pressure.
  • Banks rally hard as results approach.
  • Big miners and healthcare attract bargain hunters.
  • Energy sector charges higher.
  • AUD firms to 70.96c
  • Bitcoin steady at US$6409
  • Aussie Gold eases to $1737.
  • US futures down 16
  • Asian markets mixed. Japan up 0.24%, China down 2.2% and Hong Kong down 0.07%.

STOCKS IN FOCUS

  • MYX +5.71% looking for a further rally.
  • SAR +4.51% written up in MT this morning.
  • MGX +5.10% change of director’s interest.
  • GCY -54.72% production falls short and MD resigned last week.
  • CRN +3.88% Deferred settlement begins.
  • LYC +5.35% Malaysian regulatory update.
  • OMH -20.67% broker downgrades following investor presentation last week.
  • SAR +4.51% brokers jump on board.
  • NVT -0.80% knocks back bid. Wants move.
  • CTD -trading halt – response to short sellers report to come.
  • BAP +3.82% AGM comments positive.
  • CSL +3.67% bounce is in.
  • CUV -10.75% expands Singapore Labs.
  • FMG +1.83% gets buy back under way.
  • BPT +3.57% quarterly report.
  • KGN -32.97% Halloween comes early.
  • SWM -4.94% continues to slip.
  • LNG -23.15% quarterly highlights.
  • TWE -3.80% missed out on the rally. China focus weighs.
  • BWX -16.17% trading update and not good.
  • LVT -15.85% growth deliveries fall short.
  • WGX +10.19% change in substantial holding.
  • SYR +8.60% fire update.
  • Speculative stock of the day: Bard Life Science (BD1) +54.29% after a substantial notice from Credit Suisse with just over 5%. Last week the company was granted an additional Chinese patent covering its BARD 1 lung cancer test.
  • Biggest risers – SEA, MYX, LYC, MGX, SAR and GEM
  • Biggest fallers – OMH, CUV, CVW, EHL, SGF and SWM.

The winners and losers by Index Points

IN THE NEWS

  • BWX Limited (BWX) –16.17% Trading update. Expects FY19 normalised EBITDA to be in line with FY18 of $40.3m. Also expects skew to earnings in 2H, which is to account for ~70% of FY19 EBITDA. Beginning to FY19 has been disrupted by failed management buyout, but management encouraged by outlook for rest of FY19 and beyond.
  • Beach Energy (BPT) +3.57% Quarterly report. Revenue up 9% on quarter to $514m helped by stronger commodity prices. FY19 production and underlying EBITDA on track to reach the upper end of guidance. Net gearing target of 20% reached ahead of schedule, BPT expects to be debt free within 12 months.
  • Independence Group (IGO) +0.51% Q1 activities report; revenue down to $167.4m vs quarter-ago $243.1m, underlying EBITDA down to $62.9m vs quarter-ago $131.5m. Cash balance at 30-Sep $176.0m. Nickel production down vs last quarter and below guidance. Copper down vs last quarter and within guidance. Gold production higher vs last quarter, with AISC lower at $1,040/oz.
  • Kogan (KGN) –32.97% Business update shows active customer growth of 41.6% year-on-year, as at 30 September. Active customers of 1.45m vs year-ago 1.02m. Exclusive brands revenue +15.7% y/y. Global brands revenue (27.4%) y/y, which was driven by the changes in the GST law effective from 1-Jul-18. Gross margin decreased as a result of competition from foreign websites selling into Australia without GST and a softer AUD. Kogan mobile active customers +102.9% y/y.
  • Navitas (NVT) +0.80% Has rejected a $1.97bn takeover offer from a private equity consortium, noting the bid didn’t reflect the value “implied by management’s strategy and plan.” The consortium said it would pay shareholders 550c a share in cash, representing a 10% premium to the last closing price of 498c, but a 2.5% discount to NVT’s 52 week high.
  • Senex Energy (SXY) +1.30% Production and capital expenditure guidance released. FY19 production is expected to be in the range of 1.1 to 1.5mmboe up more than 37.5% from FY18. FY19 capital expenditure is forecast to be between $110 and 130m, up from $80m in FY18.
  • Watpac (WTP) +41.22% A bid announced by Belgium group Besix for the remaining shares it does not already own at 92c in cash. Besix owns 28% of WTP currently. The offer is unconditional and will close on 3rd December.

ECONOMIC NEWS

  • Nothing today

BOND MARKETS

  • 2-year bonds down 1bps to yield 1.97%
  • 5–year bonds down 2bps to 2.14%
  • 10-year bonds down 3 bps to 2.56%

ASIAN MARKET NEWS

  • A Boeing 737 flown by Lion Air has crashed in Indonesia. The plane was built in 2018.
  • The Chinese yuan is now down nearly 9% in the last six months. Hitting decade lows.
  • Looks like leading indicators are showing the Chinese economy continues to slow. Stock market is following.

EUROPEAN AND US HEADLINES

  • Brazil has moved decisively to the right with its own Trump version. Good for mining companies in Brazil. Jair Bolsonaro won 56% of the vote in a country where there are 60,000 murders a year. Bolsonaro aims to stop corruption and downsize the budget by selling state-owned companies. Brazil has a US$2.1 trillion economy, the second largest in the Americas behind the US.

 

And finally…………..

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Clarence 

XXXX

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